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ShipMargin

Profit margin calculator

Calculate gross and net margin, markup, ROI and break-even price after real selling costs — marketplace fees, payment processing, VAT, returns and advertising.

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Price and revenue
$
%

If your price includes tax, that share was never revenue. Leave at zero for US sales tax added at checkout.

Product costs
$
$
$
$
Selling fees
%
%
$
Net profit per unit32% net margin
$19.18

$3,836.80 a month at 200 units

Gross margin (before ads)
40.3%
Markup
200%
ROI
95.9%
Break-even price
$37.46
Where the price goes
  • Marketplace or platform fee−$7.2012%
  • Payment processing−$2.043.4%
  • Fulfilment−$6.0010%
  • Cost of goods−$18.0030%
  • Inbound shipping−$2.003.3%
  • Returns (4% rate)−$0.580.96%
  • Advertising−$5.008.3%
  • Net profitkept$19.1832%

Price needed for a target margin

  • 10% net margin$42.44
  • 20% net margin$48.96
  • 30% net margin$57.85
  • 40% net margin$70.68

Solved iteratively, because the percentage fees rise with the price — you cannot just add a markup to cost.

The profit margin calculator that ranks first for this term models cost and markup and nothing else — no marketplace fee, no payment processing, no VAT, no returns. That is fine for a mental estimate and misleading for a pricing decision.

Questions people ask about this

What is the difference between margin and markup?

Margin is profit as a share of the selling price; markup is profit as a share of the cost. A product costing $10 and selling for $20 has a 100% markup and a 50% margin. Confusing the two is the most expensive arithmetic error in retail, and it always errs toward underpricing.

Should margin be calculated before or after VAT?

After. If your price includes VAT, that portion was never yours — you are collecting it for the tax authority. A UK seller treating a £120 inclusive price as £120 of revenue overstates margin by the full 20%.

What is a good profit margin for ecommerce?

Net margins of 15% to 25% are typical for a healthy private-label business after all fees, advertising and returns. Retail arbitrage often runs thinner and survives on volume; handmade and premium brands run considerably fatter. The number that matters is whether it survives a bad returns month.

Related calculators

Break-even priceThe floor price, and the price for the margin you actually want.Compare marketplacesOne product, every marketplace, same inputs, ranked by net profit.Amazon FBAFBA fees on the 2026 structure, with break-even and max ad spend.Break-even ACOSThe ACOS, ROAS and CPC ceilings your unit economics allow.

Where these numbers come from

This calculator uses arithmetic rather than published rates — every figure comes from the values you enter. See the methodology page for the formulas behind it.

Page last reviewed . Spotted something out of date? Tell us — corrections are published with the date they were made.